Organization, preparation and storytelling can ease the mortgage process

Rich Leffler, mortgage-education consultant and instructor, Professional Mortgage Consulting

As published in Scotsman Guide's Residential Edition, July 2011.

Success in the mortgage industry requires organization. This is especially true when taking applications. Whether your applications become masterpieces or messes is up to you.

Countless underwriters have the same No. 1 complaint about loan originators — they turn in incomplete files.

Although submitting incomplete applications with missing documentation and disclosures may get files off your desk, it ultimately will cause delays and inconvenience for you and your clients. Even worse, such submissions could end up violating the Real Estate Settlement Procedures Act.

The following five tips will help you stay organized, produce better applications and become the kind of originator that underwriters love.

1. Set expectations

Imagine going to a doctor’s office and dictating what tests the doctor performs and how the examination is conducted. Sound ludicrous?

So why do mortgage originators frequently let their customers dictate the path of the application?

By not requiring customers to prepare for the application in advance, you risk receiving improper documentation and creating inconvenience that can derail a mortgage transaction.

Your accountant wouldn’t accept monetary estimates, and neither should you.

Successful loan originators set appropriate expectations when scheduling application appointments. They instruct clients to bring the necessary documentation, helping ensure that the application can be filled out correctly and completely the first time.

For phone applications, ask applicants to fax all necessary materials ahead of time.

2. Fill in the blanks

Every application should be approached thoughtfully. It also should be completed thoroughly.

The Uniform Residential Loan Applica-tion solicits the information it does for good reasons. Loan originators should complete every field. By filling in all the requested data accurately, you minimize the potential for questions and eliminate the suspicion created by incomplete applications.

Never skip questions only to answer them on the applicant’s behalf later. Doing so constitutes making a false statement to a financial institution, which is not only unethical but also a criminal offense. Because the application is a legal document, nothing on it may be added, removed or altered after the client has signed it.

By answering any question on behalf of a client, loan originators could lose their license and risk prosecution. By signing the application, you attest that you have completed the application completely, accurately and to the best of your ability.

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